FedEx Ground has agreed to a settlement of $3 million with the Massachusetts attorney general’s office over a dispute that alleged the company misclassified drivers as independent contractors, the Associated Press reported.
The Massachusetts Attorney General’s Office claimed the company’s actions denied state payroll taxes, worker’s compensation and unemployment assistance contributions and said it gave the company an unfair competitive advantage.
FedEx Ground denied liability in the settlement and is still facing a lawsuit by drivers. Money from the settlement will go to the state’s general fund as well as to 13 drivers named in the complaint.
Being classified as a contract worker can prevent you from seeking workers’ compensation benefits from a company in the event that you are injured on the job and can also have serious tax consequences. Additionally, you may be unable to collect unemployment benefits in the event that you are terminated or laid off from your job. Companies are increasingly seeking to classify employees as contract labor in order to realize the associated tax savings and to limit their liability in the event of an accident.
Anyone who is injured on the job in Massachusetts should consult a work injury lawyer right away to ensure that their rights are protected.
If you are injured on the job in Boston or the surrounding area, contact Massachusetts Workers’ Compensation Attorney Jeffrey S. Glassman for a free and confidential appointment to discuss your rights. Call 877-617-5333.